Welcome to the “Investment Era” of Bitcoin
By Anthony Bertolino
This is the first part of a continuing series where we will present cutting edge educational materials that prove we have recently entered the “Investment Era” for Bitcoin and have left the realm of pure speculation.
Bitcoin is the first scarce digital object the world has ever seen. It is scarce like Silver & Gold, and can be sent over the internet, radio, satellite etc. We can now utilize models to try and track where fair value might be.
Spoiler Alert: Bitcoin looks like it will be going much, much higher in the coming years!
Lesson #1: Stock to Flow
Stock-to-Flow Ratio is defined as existing inventory compared to annual production. While the economic utility of a consumable good (ex: Oil) is created when it is destroyed or used up, the utility of investment assets like Bitcoin and Gold lies in their possession and later resale.
Bitcoin has proven to have the highest Stock to Flow of investable assets which shows increasing scarcity. Dictionaries usually define scarcity as ‘a situation in which something is not easy to find or get’, and ‘a lack of something’.
This scarcity is due to the fact that Bitcoin has unforgettable costliness, because it costs a lot of electricity to produce new Bitcoin.
Based on this new Stock to Flow model, Bitcoin fair valuation is currently around $9,000 and is on track to hit $50,000 next year. If we look further out to 2023, it predicts Bitcoin being valued at more than $100,000 per unit.
We are excited to welcome you to the Investment Era of Bitcoin. If you want to learn more, fill out the form below to get your free, no-obligation Bitcoin IRA rollover kit from the nation’s most experienced and proven gold retirement company— the award winning Regal Assets.
https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25 Plan B, Modeling Bitcoins Value with Scarcity
https://www.getrevue.co/profile/zpx/issues/understanding-bitcoin-s-stock-to-flow-ratio-179035 Understanding Bitcoins Stock to Flow Ratio
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Maintenance and this creation of individual, internal savings are among the most important tasks of Tokens. Eg.
Eg. In Brave (a web browser), holders of BAT (tokens used in Brave) will get the rights to enrich customer experience by using their tokens to add advertisements or other attention based solutions on the Brave platform. Currency Can be utilised as a store of value which can be used to conduct transactions both inside and outside the ecosystem that was specified.
So, how does this help in utility If you would like to maximize the amount of utility that your token can provide then you will need to tick off more than one of those properties. The more properties you can tick off, the more usefulness and worth your token brings into your own ecosystem.
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Now, why shouldnt you take useless tokens with little to no usefulness For that, we need to comprehend the concept of velocity that is token. Token velocity is an indication of how much individuals respect the worth of that particular token. Then it has velocity, if people continue to a token.
Then it would look like this: Token Velocity Total Transactional Volume / Typical Network Value if you were to define Token Velocity in strictly mathematical terms. Average Network Value Total Transactional Volume / Token Velocity: if we were to reverse the formula then. That leads to two conclusions:More the velocity that is token, less the network value.
This is the reason you should work for a job whose tokens really have some utility and provides their customers a reason to hold on to them. Alright, so now that you understand what sorts of coins you need to invest in, we will now teach you how you can search for obvious signs of scams.
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Bad coins are in transparent, have quick, and promote advantages without explaining how to achieve them. Maybe the worst kind of cryptocurrencies are the MLM coins, Bitconnect, by way of example. We will talk more. What are some of the more obvious signs of scams#1 The Team It really goes without saying that a project's success is directly related to the team's credibility.
Not only do they have an incredible group, they also count people like Vitalik Buterin and Lightning Network Creator Joseph Poon among their advisors also. So it is no surprise that they had no trouble getting their funds and their investors are enjoying a return that is wholesome also.
Image Credit: Reddit Have a good look at that photo of this Incredible team. Yesyour eyes are not deceiving you, thats Ryan Goslings photo in the team page. Obviously, the majority of the time it wont be this clear to know whether the team is garbage or not. In instances like this, you need to adopt a more hands on approach.
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They should have a Linked In profile. Do a search and learn more about the group members. Ask yourself these questions:Are they involved in any successful ICO venture before Are they involved in a well-reputed company (Google, Deloitte, etc.)Are they advocated or endorsed by famous people It doesnt matter if you come across as stalkerish.
Secondly, you should look on Google for the pictures of the group members. You need to be sure you are not getting catfished. They are not putting photos of random celebrities or stock photos up . The individual maybe using the same photo on various websites and projects.
As recruiting multiplies, recruiting becomes hopeless, and members aren't able to gain; as such, pyramid schemes are often illegal and unsustainable. Any investor worth their salt will tell you that will tell you that there are no guarantees in the crypto world.
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Lets take a look at their website and promises. If you see anything then dont bother taking some of the bounties. Simple as that.
That shows that developers are definitely giving their all to the job. Now, compare this with Savedroid, which pulled off a marketing stunt and ended up alienating of their investors. Yupnot good. Purchasing Bitcoin Without Buying Them While a few years ago it was a Odyssey to buy cryptocurrencies, today you have a complete scope of options.
Thats the part. With no trouble of storing them, some people wish to invest in Bitcoin. They can use investment vehicles such as the XBT tracker (available on German and Swedish exchanges), the Bitcoin investment trust on Second Markets (USA), the Bitcoin ETI (Gibraltar and Germany) and some more.
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All these investment goods have in common that they enable investors to bet on Bitcoins cost. While most cryptocurrency-fans believe this takes away feel and the whole fun of it, for many people it is the simplest way. The investment channels that you are used to can be used by you, and you've got someone and your certification to take to the court if something goes wrong.
However there are some in progress in Europe and in the USA. Purchasing Cryptocurrencies: The Two Kinds of Exchanges The exchange serves among the functions in the crypto ecosystem. It essentially acts as a portal between the Fiat world and the world.
Fiat to Crypto Fiat into Crypto exchanges makes it possible to purchase Cryptocurrencies in exchange for Fiat money. Coinbase is the perfect example of this kind of exchange. Coinbase will help you buy BTC, BCH, LTC, and ETH in exchange for Fiat currency. Crypto into Crypto Then we have the Crypto to Crypto exchanges.
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For other cryptocurrencies. While they do offer solutions, the problem is they are.
Firstly, you open up an account at the exchange You then verify your identity that is required because of Anti-Money-Laundering rules in most jurisdictions Fund your account with Dollar or Euro or whatever paper money you use. On certain exchanges, like Bitcoin.de, you dont have to fund your accounts, but trade directly with other users.
Its alway better to use an exchange physically close to you. If it's found in exactly the same jurisdiction like you, you have the best opportunities to get money back if some bad things happen. It is better to use exchanges based in stable countries with a system that is good if no exchange can be found in your jurisdiction.
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If you would like to acquire large sums of Bitcoins you need to use one of the exchanges that provide liquidity. You can try to buy them if you only want to purchase modest quantities of coins and if you aren't in a hurry.
Check out the best crypto exchanges. There's not any general rule when to buy cryptocurrencies. Usually it isn't a good idea to buy in at the peak of a bubble, and it is also not recommended to buy it when it is crashing.
The art of trading is to decide when a crypto is in bubble mode and when it reached the bottom after falling. What is easy to say in retrospective is a challenging question in the current, which could not be answered with certainty. A coin starts to raise, and the true rally begins after it passes a mark, where everybody thinks this has to be a bubble's peak.
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However, some month these prices seem to have been a great moment to start. There is. Dont compare traditional bubbles and crypto bubbles. 10 percent up isn't a bubble but may be volatility. Often it's just the start of it, although 100 percent up can be a bubble.
Take some time. Dont buy in, because there was a dip. There might be another. And dont buy in, because you fear that it is going to explode tomorrow. Watch it, get yourself informed, purchase it, when you think the timing is great. And, maybe most important: dont be a weak hand.
Hold. The revolution has started. To Store Cryptocurrencies Alright, so your cryptocurrencies was purchased by you, where exactly should you store them Well first and foremost Keep off them the Exchange!There is simply no way that you need to keep your coins in an exchange. There is a long history of hacks and bankruptcies in cryptocurrency markets the hack of Mt.
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Not all exchange wallets are risky. For instance, for people in the EU, Bitcoin.de enjoys a solid trust level. The market operates without loss of clients funds because 2011, the owners are well known in the European and German community, and an annual audit by company checks if all coins are offered.
Thats the risk you need to take. Then you should take matters and store them, if you want to save your cryptos. This is where you need to educate yourself about crypto wallets. Hot Wallets vs Cold Wallets Lets know the distinction between the two with a example.
Keep this distinction in mind as we proceed forward. Basically, if you would like to use your currency frequently you have to use storage. On the other hand, if you would like to store your cash for a long time you have to use cold storage.
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This connection is what makes a device hot. It's easy to get funds on a wallet that is hot, and if you live somewhere that accepts cryptos for micropayments, theres nothing wrong with using one.
You may walk around with a part of your wealth in a pocket for convenience but the majority you keep secured away. Your wallet should act in precisely the exact same manner as a pocket. You use it to take a small amount of cash. That is all.
They are hackable. The entire crypto-space has been gaining plenty of value and crime is never far behind where theres value. Recent ransomware strikes, and compromises of exchanges that are big should be beacons to newcomers. Even though youll not be storing a great deal of value its vital that you adhere to the backup steps inside the restoration part of your wallet to avoid losing funds through error.
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Experts of hot storage Quick to get funds. Wide number of options, and support for devices. User-friendly UIs make receiving and sending simple. Cons of hot storage Exposed to cybercrime. Ransomware, sophisticated hackers, and other actors are a danger. Damaging the device could destroy the wallet. You could permanently lose your investment that is cryptocurrency without carefully backing up seed phrases, and private keys.